HealthPREMIUM

Health director-general and senior officials charged with fraud

Sandile Buthelezi and two others allegedly used Global Fund money for an internal disciplinary inquiry

 Dr Sandile Buthelezi has been appointed director-general of the health department.
Sandile Buthelezi. ( SANAC)

Department of health director-general Sandile Buthelezi and two other senior officials have been arrested and charged with fraud and theft for allegedly using money from the Global Fund to Fight Aids, TB and Malaria for a disciplinary hearing.

Buthelezi, who is no stranger to controversy, appeared briefly in the Pretoria specialised commercial crimes court on Monday morning, alongside the department’s CFO, Phaswa Mamogale, and deputy director-general for tertiary services Percy Mahlathi.

In 2021 Buthelezi was placed on precautionary suspension after the Digital Vibes scandal, in which a lucrative communications contract was awarded to an obscure company run by close associates of then health minister Zweli Mkhize. Buthelezi was later reinstated after a disciplinary inquiry cleared him.

Last year public works & infrastructure minister Dean Macpherson drew attention to the findings of a forensic investigation into the awarding of an oxygen plant tender, which raised questions about Buthelezi’s decision to override a lower-ranking official’s concerns about the cost of the project, which had more than doubled from an initial estimate of R217m to R593m.

The National Prosecuting Authority (NPA) said the three men allegedly irregularly appointed two service providers for a labour-related matter in 2023. Ithani Amen was appointed as an independent investigator and law firm N Mbileni & J Tohlang-Nkopane was appointed to chair a disciplinary hearing against the health department’s suspended chief director for labour relations.

“Both service providers were paid via the Global Fund, aimed to assist the department in training and relief in outbreaks,” the NPA said in a statement.

Three senior officials from the department of health, Percy Mahlati, Phaswa Mamogale and director-general Sandile Buthelezi, in the Pretoria specialised commercial crimes court on Monday. Picture: HERMAN MOLOI (Herman Moloi)

Each of the three men faces two counts of fraud of more than R1m and theft. Buthelezi faces an additional charge of contravening the Public Finance Management Act, said the NPA.

The accused were each granted R10,000 bail, on condition that they do not enter their work premises until the matter is concluded. They have been instructed to hand over their passports, inform the investigating officer when intending to travel outside Gauteng and not to contact any witnesses, said the NPA. Their case was postponed to June 3.

The Hawks said a fourth suspect, the service provider, and her company are still to be arrested.

Health minister Aaron Motsoaledi said he is in the dark about the investigation into the officials, and the law must take its course.

Acting government spokesperson Nomonde Mnukwa said the fight against corruption is an apex priority for the government as part of its commitment to building a safer, ethical and corruption-free South Africa.

“This development aligns with the 2026 state of the nation address by President Cyril Ramaphosa, in which he underscored the need to intensify efforts against organised crime and systemic corruption, identifying these as critical threats to democracy and economic stability,” she said.

Update: March 2 2026

This story was updated at 6pm to include comment from the NPA.

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